Indian stock markets opened lower on Monday, extending losses from the previous session, as rising crude oil prices and escalating tensions between the United States and Iran weighed on investor sentiment. The BSE Sensex tumbled over 300 points in early trade, while the Nifty 50 index slipped below the 17,800 mark.
Market Performance
The 30-share BSE Sensex was trading at 59,600.32, down 312.45 points or 0.52 percent, at 9:30 am. The broader NSE Nifty fell 89.90 points or 0.50 percent to 17,785.10. Selling pressure was seen across sectors, with banking, auto, and metal stocks among the top losers.
Key Factors Behind the Decline
- Rising Oil Prices: Brent crude oil prices surged above $85 per barrel, raising concerns about inflationary pressures and higher input costs for companies.
- US-Iran Conflict: Geopolitical tensions escalated after the US launched airstrikes against Iran-linked targets in Syria, fueling fears of broader conflict in the Middle East.
- Global Cues: Weakness in global markets, particularly in Asia, added to the negative sentiment. Japan's Nikkei and Hong Kong's Hang Seng indices were trading lower.
Broader Market Impact
The midcap and smallcap indices also witnessed selling pressure, with the BSE Midcap index falling 0.6 percent and the BSE Smallcap index declining 0.4 percent. Market breadth was negative, with 1,528 stocks declining compared to 1,024 advancing on the BSE.
Expert View
Analysts said that the market is likely to remain volatile in the near term due to geopolitical uncertainties and rising oil prices. They advised investors to adopt a cautious approach and focus on quality stocks.
Meanwhile, the Indian rupee weakened against the US dollar, trading at 83.12 per dollar, down 0.12 percent from the previous close. The 10-year government bond yield edged higher to 7.34 percent.
In corporate news, shares of oil marketing companies such as HPCL, BPCL, and IOC declined due to concerns over higher crude prices. Auto stocks like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra also traded lower.
The markets are expected to track global developments and crude oil prices for further direction. Investors will also watch for any fresh triggers from the ongoing earnings season.
